Despite continuous pressure from the US buyers, ex-Brazil basic pig iron (BPI) prices have been stable in latest deal. Sellers have been resisting the downtrend, having more or less good order books.
A contract from one of the major suppliers for BPI with 0.15 percent of phosphorus content has been heard at $445/mt FOB for August shipment for the US steel mill, translating to near $475/mt on CFR basis. Some market sources said that the FOB excluding some financial expenses was $440-445/mt FOB. In any case, this is in line with the previous sales to the US. “Sellers are sold out and costs are high so I hope the market will be stable and not fall,” a Brazilian source said. “The producers keep asking $450/mt FOB for August shipment, not many changes,” another source from Brazil said.
A rumor has been heard in the market about a sale for Brazilian BPI to another US mill at $480/mt CFR, but there has been no confirmation on the phosphorus content and a few sources said this is hardly to be true for BPI with 0.15 percent of phosphorus content. One Brazilian producer also claimed a sale for BPI with 0.12 percent of phosphorus content at $490/mt CFR to the US, which has also been assessed as too high by market sources. Both deals have remained unconfirmed by the time of publication, so they are not included in the daily reference price.
The current reference price for imported BPI in the US is $470-485/mt CFR versus $465-485/mt CFR last week. In general, the market has been stable, but fewer cheap options have been available lately.